Lane Cove prices hit rock bottom!

I couldn't help the pun (sorry) but it will be interesting to see if the LC unit market is now affected by the umm.... slip up. I must admit I do feel sorry for the purchaser who only moved into the block last Friday. I bet he never thought he'd be moving so soon!
Does anyone here have any investments in Lane Cove?

This is a general comment only and does not constitute advice. Before making financial decisions you should seek advice from a professional adviser, who can take into account your specific circumstances and investment goals.

One poor owner was interviewed saying that the unit had been nothing but trouble since he bought it so he was glad it had fallen into a hole!

I guess this emphasises the importance of making sure your insurance (in this case the building insurance maintained by the body corporate) is current and adequate.

Also, many body corporates seem to cut costs by not getting a proper replacement valuation done every few years and merely take a cpi increase on the replacement value. If you own units it pays to be active on your body corporate to make sure that proper sinking fund, workplace safety and insurance reports are prepared regularly and then acted upon.

Cheers
N.

Nigel

This is a general comment only and does not constitute advice. Before making legal or financial decisions you should seek advice from a professional adviser, who can take into account your specific circumstances and investment goals.

Can you imagine the 'finger pointing' that is going to go on with this one!

It was a leaking pipe, therefore Sydney Water.........no.......it was the Geotech Consultant.........no........it was the Construction Company.........no....the RTA........no.........Project Manager.......no........it was the weight of the laundry on the balcony.........no.............

Indeed. You'd like to think the Lane Cove Tunnel consortium would just fess up (assuming it's their fault) and cough up to compensate the owners with reinstatement or buy their units at pre-collapse market value...

but I doubt that will happen.

Nigel

This is a general comment only and does not constitute advice. Before making legal or financial decisions you should seek advice from a professional adviser, who can take into account your specific circumstances and investment goals.

My wife's a solicitor and she'd probably suggest the "but for" test in this situation. e.g. "But for the lane cove tunnel consortiom's construction the building would still be standing". If this test holds true then it is the intervention of the tunnel that contributed to the apartment block falling down.

Typically the but for test is used in criminal cases, not civil ones. Sort of like when someone dies when they are punched and fall and hit their head on the concrete. Defence might argue that it was just a punch and shouldn't carry a charge of manslaughter. Prosecution will wheel out the but for test and argue that but for the punch he wouldn't have fallen and been killed. Their is a concrete link between cause and effect.

Just rambling as always...
Michael.

Goal: Financial independence by 2015Plan: Focussing on Resi property development in the short term to build in equity and improve cash flow.Status: Development site procured and DA approval achieved. Intend to commence construction mid-2009.

This is a general comment only and does not constitute advice. Before making financial decisions you should seek advice from a professional adviser, who can take into account your specific circumstances and investment goals.

This is a general comment only and does not constitute advice. Before making legal or financial decisions you should seek advice from a professional adviser, who can take into account your specific circumstances and investment goals.

One poor owner was interviewed saying that the unit had been nothing but trouble since he bought it so he was glad it had fallen into a hole!

I guess this emphasises the importance of making sure your insurance (in this case the building insurance maintained by the body corporate) is current and adequate.

Also, many body corporates seem to cut costs by not getting a proper replacement valuation done every few years and merely take a cpi increase on the replacement value. If you own units it pays to be active on your body corporate to make sure that proper sinking fund, workplace safety and insurance reports are prepared regularly and then acted upon.

Cheers
N.

Click to expand...

CBA offers an insurance to owners that covers the gap between what body corporate insurance and current market price (in fact one take the insurance for certain amount). I got some of those insurances because traying to get body corporate to agree on this point is not always possible.
Do you think that would be appropriate coverage in a situation like the LC building?

It may well be. I guess one point to remember is that it is replacement value, i.e. what it will cost to demolish, clear and rebuild that is the key rather than current market price.

Cheers
N.

Nigel

This is a general comment only and does not constitute advice. Before making legal or financial decisions you should seek advice from a professional adviser, who can take into account your specific circumstances and investment goals.

I own a unit in lane cove. Have had it since 2000. It was my first investment and has doubled since purchase. I have lived in the area all my life, I think its a great place. Very easy to get to anywhere in a reasonably short time, except when holes threaten to swallow the roads! Easy access to the city down the fwy, or easy to get out west along the m2.
It can't effect the prices in the area - I think. That red unit block would have to be in the worst location, right next to the busy gridlock that happens every day. Once the tunnel does open, that epping road strip should become alot quiter. I would still not buy anywhere near that strip though.

This is a general comment only and does not constitute advice. Before making financial decisions you should seek advice from a professional adviser, who can take into account your specific circumstances and investment goals.